Tony Tiah continues to mop up TA shares

by **Cals** Thu 13 Mar 2014, 17:03

Business & Markets 2014

Written by Charles Yong of theedgemalaysia.com

Thursday, 13 March 2014 09:32

KUALA LUMPUR: Datuk Tony Tiah Thee Kian (pic) has been gradually raising his equity interest in TA Enterprise Bhd by accumulating shares on the open market.

Tiah, the co-founder and the single largest shareholder of TA, has seen his shareholding increase to 30.34% yesterday from 29.08% in August last year. He bought 50,000 shares at 77 sen each yesterday, according to filings with Bursa Malaysia.

Between October 2012 and yesterday, the group’s non-executive chairman Tiah acquired about 34 million shares on the open market in transactions spread over 107 days. He did not dispose of any shares during the period.

The veteran stockbroker bought shares every month during the period except September 2013, most of August 2013, and between March and June 2013. He is the only director and substantial shareholder to have changed his equity interest since October 2012.

The other shareholders in the group include Globabase Enterprise Ltd (4.185%), Delroy Investment Holdings Ltd (4.052%), Fleet Investment Management Ltd (4.017%) and Glodcape International Ltd (2.913%), according to TA’s latest annual report. This group of substantial shareholders collectively hold about 15.16% of the company.
It remains to be seen whether Tiah intends to acquire 33% of the group and trigger a mandatory general offer to take it private. It has long been speculated in the industry that Tiah intends to sell the stockbroking business.

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In July last year, his spouse and co-founder of TA Alicia Tiah denied rumours that the group was in talks to sell its securities business to K&N Kenanga Holdings Bhd. However, she said the group was always open to exploring such a divestment at the right price.

TA’s share price has been hovering between 70 sen and 80 sen in the past four months, after the stock rebounded from 58 sen in September last year. The counter has gained 55% over the 16 months since Tiah began accumulating shares in October 2012. It closed at 77.5 sen yesterday.

In terms of financials, TA’s net profit grew 77.4% for the nine months to Oct 31, 2013, compared with the previous corresponding period.

This article first appeared in The Edge Financial Daily, on March 13, 2014.